Eutelsat Shares Soar as France Backs $1.55B Capital Boost

Shares of Eutelsat, a key rival to Starlink in the satellite communications arena, experienced a significant surge, climbing as much as 31% following news that the French government is supporting a substantial capital raise of €1.35 billion ($1.55 billion).

The capital injection, also supported by other investors, aims to bolster Eutelsat’s Low Earth Orbit (LEO) capabilities, primarily targeting business-to-business (B2B) and business-to-government (B2G) operations. Alongside a debt refinancing plan, the funding is expected to significantly strengthen Eutelsat’s competitive position.

French Government Takes Leading Role

With this capital raise, the French state is set to become Eutelsat’s largest shareholder, commanding 29.99% of both capital and voting rights. Bharti Space Limited of India will follow, holding 18.7%.

Eutelsat utilizes launch services from companies like SpaceX to deploy satellites into both LEO and geostationary orbit (GEO). The company previously merged with British satellite firm OneWeb in 2023, solidifying its position as the world’s third-largest satellite operator by revenue.

Strategic Importance Highlighted

Earlier in the week, Eutelsat secured a 10-year agreement with the French armed forces to provide priority access to space resources via its OneWeb LEO constellation.

Eutelsat’s stock has seen considerable volatility this year, including a sharp spike in March amid speculation that it could emerge as a European competitor to Starlink. Year-to-date, shares are up 69%.

“As the only European operator with a fully operational LEO network, Eutelsat is positioned to play a strategic role in supporting critical sectors such as military communications, cyber-resilience, and secure government connectivity, fully aligned with European Union and NATO objectives for strategic autonomy,” the company stated.

Macron’s Endorsement

French President Emmanuel Macron affirmed his support on X (formerly Twitter), emphasizing that strengthening Eutelsat’s position ensures France’s strategic independence and paves the way for Europe. He indicated further discussion of this decision at the Paris Air Show.

Eutelsat’s potential role as an alternative to Starlink has been previously speculated, particularly in regions like Ukraine.